Global leader in audit and consulting Deloitte has just released of its Global Risk Management Survey Report, 10th edition – heightened uncertainty signals new challenges ahead.
Deloitte University Press, the publishing arm of international leader in audit, consulting, and financial and risk advisory services – Deloitte, recently presented the results of the 10th edition of its Global risk management survey, which marks the latest installment in Deloitte’s long-term, on-going assessment of the state of risk management in the global financial services industry. Survey responses were collected from a total of 77 financial instititions from all around the globe, and across multiple financial services verticals, accounting for a total of USD 13.6 trillion in aggregate assets.
One key insight from 10th edition of this Deloitte survey found that leading risk management practices continue to gain wider adoption across the industry. The CRO, or chief risk office, has quickly become the norm. More and more often, these CROs report directly to the CEO and board of directors, signifying the increased importance of the role. Enterprise risk management programmes that aim to identify and manage risks across the enterprise have likewise become standard. The wide majority of survey respondents considered their institution to be effective in the management of traditional forms of risk, such as credit, market, and liquidity risk. An overview of some of the key findings gathered during Deloitte’s Global risk management survey, 10th edition is provided below.
- 42 % of respondents saw their institution as highly effective in managing cybersecurity risk.
- Roughly 80 % of respondents described their institution as highly effective in managing traditional forms of risk.
- Newer forms of risk present considerably more challenges, unlike traditional types.
- IT systems and risk data pose significant challenges
- Stress testing by regulators is on the rise
- Increased importance and cost of compliance
Evolution of risk management
- More active board oversight
- Increased use of board risk committees
- Increased adoption of CRO position
- Wider set of responsibilities for the CRO
- Widespread adoption of ERM programme
For more detailed insight, read or download the complete Deloitte Global risk management survey, 10th edition here.